White Dwarf 152 page 55 cays Karak-Kadrin is "Called 'Peak Pass' in the Dwarf tongue because it guards one of the main trading routes through the Worlds Edge Mountains from the distant east to the cities of the Old World". If we're updating it to modern times, maybe "Peak Pass" is closer in meaning to "Pass through the massive mountain range of big peaks".
Of course, you'd need a word for 'mountain range' in that case. 'Ankor Kadrin', maybe.
I think that would mean that 'peak' means 'busiest', like a peak season. That would make sense, but I don't think we know how to do superlatives in Khazalid.